Local Currency Markets
The Kwacha depreciated against the US dollar on 04 February 2016 as compared to the close of business on 03 February 2016. The domestic currency opened trade at 11.2667/11.2867 on average and was trading at 11.2689/11.2889 levels during morning trade. In the late afternoon, the kwacha was trading at levels of 11.2711/11.2911 levels on interbank. The Kwacha at close of trading was at 11.2550/11.2750. In the short-term the Kwacha is expected to trade between 11.2800 and 11.3300 on interbank.
Reuters – The kwacha may come under pressure next week due to limited inflows of hard currency into Africa’s second largest copper producer.
Treasury Bill Results: the fortnightly Treasury Bill auction remained undersubscribed even under the renewed reduced amount of K450m on offer. Appetite remains aggressive and constant for 364 day tenor.
Reuters – The rand strengthened against the dollar as the fading prospect of more near-term U.S. rate hikes drove the dollar to its biggest daily fall in over two months.
The rand had gained 0.67 percent to 15.8225 per dollar after touching a session high of 15.7500
Reuters – Sterling hit a one-month high against the dollar on Thursday, putting it on track for its strongest week since 2009, after the Bank of England chief Mark Carne quashed talk that interest rates could be cut in the coming months.
Sterling was trading up 0.1 percent on the day at $1.4610, taking its weekly gains so far to 2.5 percent. It had earlier touched $1.4672, its strongest since early January, after the dollar fell on U.S. data showing jobless claims rising more than expected.
Reuters – The dollar steadied in Asian trading on Friday but remained on track for weekly losses, as investors braced for U.S. employment figures later in the session for the latest clues on the outlook for the Federal Reserve’s monetary tightening path.
The euro edged down around 0.1 percent to $1.1198 after surging 1 percent overnight to $1.1239, its loftiest since October. The single currency was up about 3.4 percent for the week.